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COVID-19 News

Understanding the CARES Act: Contribution Deadline & Defined Benefit Funding Relief

Contribution Deadline and Defined Benefit Funding Relief. Some contribution deadlines have been extended and certain defined benefit (DB) plans are eligible for funding relief.

A Message to Our Friends and Partners

On behalf of all of us at FuturePlan, we extend our wishes for a full recovery to those directly affected by COVID-19, and our deepest sympathies to those who have lost loved ones. Our heartfelt thanks go out to the medical professionals, first responders, and essential workers who are saving lives and sustaining our communities.

Message from David Musto, CEO of Ascensus

It’s safe to say that the environment in which we’re living and coping today is unlike any most of us have seen in our lifetimes. Worry for our own health and that of our loved ones, challenges to the operation of virtually every type of business, social distancing, travel restrictions, and startling global financial market volatility sometimes feel beyond our ability to process.

Pandemic Preparedness and Response Statement

As a business division of Ascensus, FuturePlan has maintained a Pandemic Preparedness plan since day one. It is one component of our larger Business Continuity planning process.

FuturePlan Supports Small Businesses

Small businesses are the backbone of the American economy. With these businesses and their workers bearing the brunt of the hardship associated with the coronavirus (COVID-19) pandemic, it’s incumbent on the financial services industry to do whatever we can to support them. Many believe that this support will come mainly through federal relief, and that smart legislation—providing financial stimulus and other appropriate relief—will help right the ship.

Our COVID-19 Response

At Ascensus, we consider the safety and wellbeing of our clients and associates to be paramount. Our service and leadership teams have been closely monitoring the global spread of COVID-19 and have been making proactive adjustments to our operations in order to ensure the continued service and expertise you count on.

Regulatory Updates

New Guidance on Escheated Retirement Plan Account

The IRS has issued guidance for qualified retirement plans that escheat certain accounts of unresponsive or missing participants or beneficiaries to state unclaimed property funds.

IRS Revises Rollover Self-Certification Rules

The IRS has issued modified guidance for taxpayers to self-certify their eligibility for an extension of the 60-day deadline to complete an otherwise-eligible rollover. 

Updated Yield Curves and Segment Rates for DB Plans

The IRS has posted Notice 2020-77, guidance on factors used in certain defined benefit (DB) pension plan minimum funding and present value calculations.

PBGC’s November Interest Rate Assumptions for DB Calculations

Interest assumptions for benefit payments with valuation dates in November 2020 to be published in the October 15, 2020 Federal Register.

2021 TWB Announced; Retirement Plan Limits to Follow

The Social Security Administration has announced the 2021 adjustments for benefits and certain other limitations that are subject to annual cost-of-living adjustment (COLA) indices.

Treasury and SBA Announce Simpler PPP Loan Forgiveness Form

Treasury and SBA have announced a “simpler” version of the form used by recipients of Paycheck Protection Program (PPP) business loans of $50,000 or less to request loan forgiveness.

IRS Updates Deadline Relief for Victims of California Wildfires

The IRS has updated deadline relief for completing certain time-sensitive, tax-related acts for victims of California wildfires that began on August 14, 2020.

House Passes Revised Pandemic Relief Bill, Disagreements Remain

The House of Representatives has passed a revised version of the HEROES Act estimated at $2.2 trillion to provide pandemic relief.

House Bankruptcy Bill Would Impact Retirement Plans

H.R. 7370, the Protecting Employees and Retirees in Business Bankruptcies Act of 2020, has been introduced by Rep. Jerrold Nadler (D-NY).

Default Withholding Rate for Periodic Retirement Plan Distributions

The IRS has issued a pre-publication version of final regulations on the default tax withholding rate to be applied to periodic and annuitized distributions from retirement plans.

FuturePlan Blog

Becoming FuturePlan: A Personal Story from One TPA’s Journey

Almost three years ago, our RSI leadership team embarked on a new adventure: selling the firm we built from scratch. We wanted to ensure the future of our partnerships, clients, and talented associates was bright – filled with growth and opportunity.

3(16) Fiduciary Services: What’s All the Hype About?

3(16) fiduciary services are one of the fastest growing sectors of the retirement plan industry today, but why do these plan administrators exist? We cover that in this post.

The Basics of Prevailing Wage & The Davis Bacon Act

Prevailing wage was established under federal law by the Davis-Bacon Act of 1931. The act mandates that contractors and subcontractors must pay their workers an hourly prevailing wage when working on any federally-funded construction project in excess of $2,000.

Thought Leadership

Fixing Compensation Failures

One of the most common plan failures we see is the use of the wrong definition of compensation for plan contributions. A failure like this can be expensive to fix, but also easy to avoid. This article will address options to fix the plan, as well as ways to avoid this issue.   

Fiduciary Myths and Misconceptions in the Market

There are a lot of misunderstandings in the retirement industry regarding fiduciary services and 3(16) plan administrators. Why do they exist? What do they do? How do you find a good one? We’ll answer these questions and address some myths in this post.

Payroll Data: The Source of Plan Errors

In our previous post, Fiduciary Market Myths and Misconceptions we discussed a few misunderstandings in the market and shed light on them. The last misconception, "recordkeepers will check payroll data for accuracy" (they do not), is one that leaves the remaining question for plan sponsors: can they really ensure their payroll data is 100% error free?

Frequently Asked Questions

Late Deferral Deposits – What are the Rules, Exactly?

Some employees carefully watch their deferral contributions with each paycheck as they go into their 401(k) or 403(b) plan account. After all, it is their money – wages they’ve set aside to be paid later! But how quickly must the deposit be made? Employers often misunderstand the deposit timing rules for employee deferrals. In this article, we will explain the rules, exceptions, and consequences, along with the options available for fixing late deposits.

Trending Topics

Contribution Allocation Options

Flexible plan designs with varying contribution allocations can help business owners manage costs and tax efficiency, since they can be set aside in lean years.

Qualified Birth and Adoption Distribution (QBAD)

FuturePlan provides an overview of this new SECURE Act provision with questions pending IRS guidance.

SECURE Act and Potential Tax Credits: What You Need to Know

Discusses two tax credits available to some small employers through the SECURE Act.

CARES Act and the Paycheck Protection Program (PPP)

Outlines program details, eligibility, and loan terms.

Guide to Coronavirus-Related Distributions, RMDs and Loans

FuturePlan provides an overview of Coronavirus-related distributions (CRDs), along with expanded RMD and loan options based on the CARES Act.

COVID-19 and Safe Harbor Plan Changes

Helpful guide and key timing considerations for plan sponsors needing to amend safe harbor contributions.

Understanding Changes to Matching Contributions

Resources and FAQ to help plan sponsors reduce or suspend matching contributions in response to business disruption.

Options for Paying Expenses from Plan Assets

FuturePlan reviews a range of options for paying retirement plan-related fees from plan assets and reduce expenses during the downturn.

Covid-19 Impact on Cash Balance and Defined Benefit Plans

An overview of legislative changes and plan design options for plan sponsors of Cash Balance and other defined benefit plans.

Market Adjustment Impact on Balance Forward Plans

Understanding the special considerations required to manage balance forward plans during market fluctuations.